CITIZEN'S SUMMARY

Gary, Indiana, is located in the northwestern corner of the State, near
Chicago, Illinois. The city is home to a wealth of transportation modes,
including major highways such as Interstates 80, 90, and 94; eight freight train
lines; three passenger train lines; and a commuter service that connects
Northwest Indiana to Chicago. International service from Chicago's Midway and
O'Hare Airports and from the Gary Regional Airport can easily transport goods
and people to anywhere in the world.

Northwest Indiana is also linked to the Atlantic Ocean and the world
beyond by the St. Lawrence Seaway and Burns International Harbor by way of Lake
Michigan. The nearby Port of Indiana in Portage has direct access to the Gulf of
Mexico via the Mississippi River and is located in an international trade zone
designed to increase commerce in the region. Gary plans to build an
international seaport at Buffington as part of its intermodal cargo park
development.

Action Plan

For the first year of its Consolidated Plan, Gary will have a total of $13
million in funding from the Community Development Block Grant (CDBG) program,
the HOME Investment Partnership (HOME) program, and the Emergency Shelter Grant
(ESG) program. Some of the projects slated for this year include upgrading of
the Ambridge-Mann Community Center, the emergency rehabilitation program for
housing, and improvements to fire stations.

Citizen Participation

Gary has made a concerted effort to provide opportunities for its citizens
to participate in developing the Consolidated Plan. Public meetings were held on
September 8 and 29, 1994. A draft of the plan, citizen questionnaire, and other
U.S. Department of Housing and Urban Development (HUD) Consolidated Plan
materials were made available in appropriate public places, and a summary of the
Consolidated Plan was published in the local newspaper. The citizen review and
comment period was from September 7 to October 6, 1994.

COMMUNITY PROFILE

In 1990 Gary's population was 116,646, a 23-percent decrease since 1980.
Gary had 40,752 households, with the average household size being 2.83 people.
Of those households, 11,738 had extremely low incomes at 0-30 percent of the
median family income (MFI); 5,674 had very low incomes at 31-50 percent of the
MFI; 7,260 had low incomes at 51-80 percent of the MFI; and 2,997 had moderate
incomes at 81-95 percent of the MFI. Half of the 27,669 Gary households with
incomes below 95 percent of the MFI were homeowners.

HOUSING AND COMMUNITY DEVELOPMENT NEEDS

Conditions

Between 1979 and 1990, the civilian labor force in northwestern Indiana
declined almost 10 percent. The area lost more than 40 percent of its jobs in
the manufacturing sector, with a 48-percent job loss in the steel mills. In 1980
nonmanufacturing employment represented 60 percent of total employment and by
1990 it had increased to 70 percent.

While manufacturing employment has significantly declined, the five major
steel producers in the region have invested millions of dollars to upgrade their
northwest Indiana facilities. New retail, service, and small manufacturing firms
are locating in the area. Skilled labor, generally overly abundant in the 1980s,
is in demand again. In 1983 the unemployment rate had climbed to 15.4 percent;
by 1990 it had declined to an annual average of 5.7 percent. Overall, the
regional economy seems to be recovering from a severe and prolonged recession
and is moving toward a better integrated and potentially sustainable economic
base.

Housing Needs

HUD defines housing problems as inadequate physical conditions,
overcrowding, or payment of 30 percent or more of income for housing expenses.

Rental households with housing problems include:

71 percent of extremely low-income households.

63 percent of very low-income households.

24 percent of low-income households.

7 percent of moderate-income households.

Among rental households, large-family households (five or more related
persons) consistently have the most housing problems.

Homeowners with housing problems include:

79 percent of extremely low-income households.

56 percent of very low-income households.

26 percent of low-income households.

11 percent of moderate-income households.

Market Conditions

Almost 60 percent of the 40,968 occupied housing units are owner occupied.
The vacancy rate is 13 percent for rental units and almost 3 percent for
ownership units. About 25 percent of rental units and 28 percent of ownership
units are considered substandard.

The Metropolitan Statistical Area's average applicable fair market rent is
$424. However, the average affordable rent in Gary is $397, which residents with
incomes that are 30 to 50 percent of the MFI can afford. According to the
Northwest Indiana Board of Realtors, the value of owner-occupied units in Gary
and the metropolitan area is increasing. In 1980 the median value of
owner-occupied units was $25,000 for the city and $41,000 for the metropolitan
area. In 1990 the median value of owner-occupied units in Gary was $31,700
compared with $54,800 for the metropolitan area.

Affordable Housing Needs

Households that pay 30 percent or more of their income for housing are
considered to be cost burdened; those who pay half or more of their income for
housing are considered to be severely cost burdened. Seventy-three percent of
extremely low-income households, 59 percent of very low-income households, 25
percent of low-income households, and 11 percent of moderate-income households
are cost burdened. Those with severe cost burdens include 52 percent of
extremely low-income households, 14 percent of very low-income households, and 2
percent of low-income households.

Homeless Needs

An estimated 2,078 persons are homeless. About 67 percent are members of
homeless families, 19 percent are victims of domestic violence, 3 percent are
mentally ill, and 16 percent are drug or alcohol abusers. The majority of
homeless persons in this count were found in emergency shelters.

The city has various agencies and facilities to meet the needs of the
homeless, but gaps in service exist. For example, youth who have lived in
children's homes throughout adolescence may find themselves without a place to
live once they turn 18. Such individuals may not have matured or developed
mentally enough to live on their own.

The homeless have an urgent need for safe and adequate housing and, to some
extent, supportive services. On the whole, the greatest need is for affordable
rental housing for all groups, including large families. Housing is also in
short supply for persons who require specialized accommodations.

Public and Assisted Housing Needs

The Gary Housing Authority (GHA) continues to provide safe and sanitary
public housing to extremely low-income families and special needs individuals
who are financially unable to afford safe and decent private housing. Public
housing sites are scattered throughout the city. Gary has 2,469 public housing
units, and 201 of them are vacant. About half of the vacant units are undergoing
rehabilitation. Based on a recent GHA assessment, 39 public housing units need
to be modified to provide accessibility to disabled people.

The GHA also administers 827 tenant-based units through the Section 8 rental
assistance program. The program issues 541 certificates and 286 vouchers.
Currently, the program has no vacancies. Private sector housing provides 661
assisted units to low-income individuals and families. Other housing assisted
programs include Section 221 (d) (3), Indiana Housing Finance Authority (IHFA),
the Section 8 set-aside program, and the Project 236 program. At least 1,800
households, including sheltered and unsheltered people, are waiting for
available affordable housing.

Barriers to Affordable Housing

Overly restrictive income limits for many HUD programs are major barriers to
affordable housing. The city also cited two other barriers: inaccurate appraisal
practices, and residents' inability to obtain homeowners' insurance because the
city is considered a high-risk area.

Fair Housing

The city cites redlining, where home loans or insurance are withheld from
neighborhoods considered to be poor risks, as a serious fair housing problem.
However, the Gary Human Relations Commission is working with the Northwest
Indiana Community Reinvestment Alliance, a group of financial institutions, to
provide mortgages to low- and moderate-income families. Furthermore, the
commission is monitoring the practices of lenders and landlords and is working
to improve citizen awareness of their rights to seek financial assistance for
home improvements and purchase of property. They will also continue to research
and analyze information related to the credit needs of the community while
seeking ways and means of increasing citizens economic awareness.

Lead-Based Paint

An estimated 21,923 very low-income households and 5,085 low-income
households live in housing with potential lead-based paint hazards; 57 percent
of the total housing units may contain lead-based paint. Almost all of the 74
licensed child-care facilities probably contain lead-based paint hazards,
because they were built before lead-based paints were banned.

To reverse the negative effects of lead-based paint exposure, the city
proposes the following actions within the next year:

Establishing an interagency working group to complete a thorough needs
assessment and coordinate hazard reduction efforts across agency lines.

Developing an educational strategy for target groups.

Developing technical capacity.

Supporting existing health care programs.

Including inspection for lead hazards as a requirement for
government-assisted housing rehabilitation.

Other Issues

Like any other city, Gary has a population of residents who have unmet
special housing needs. For example, Gary has public and private organizations
that address the needs of elderly and frail elderly people, but there is still a
shortage of facilities, particularly for the frail elderly population. As the
general population ages, the need for additional affordable and supportive
housing will increase. At least 100 elderly people need supportive housing. Area
nursing homes and home care providers indicated the city needs additional
facilities for frail elderly and physically disabled people. The GHA's waiting
list for affordable housing includes 60 elderly people.

Accessibility is the most obvious housing need of the physically disabled.
About 92 physically disabled people who are not homeless require more accessible
housing.

More facilities are needed for the mentally ill population. The Gary
Community Mental Health Department provides most of the support for the mentally
ill population. In some cases, area hospitals have provided beds to mentally ill
people for months because the area lacks alternatives. An estimated 250 people
with mental illness who are not homeless have unmet special housing needs.

According to housing and service providers, people who are developmentally
disabled, particularly youth, need more transitional and permanent housing.
Facilities that provide semi-independent living conditions with limited support
services are really needed to enable and encourage self-sufficiency.

Based on data reported by the Clinical Data and Research HIV/AIDS
Surveillance, about 287 AIDS cases and 363 HIV-positive cases have been
diagnosed in the area. No housing facilities specifically for persons with HIV
or AIDS are available.

Community Development Needs

With the help of community input, the city has identified a number of
community development needs:

Transportation and utilities. A regional bus system that links empowerment
zone communities to the region needs to be enhanced and expanded. Roads within
the city need resurfacing, and some high traffic areas need special attention.
The city also needs to upgrade and extend water, sewer, gas, and electric lines.

Land use. The city must develop a way to use or reuse vacant residential,
commercial, and industrial sites. Databases of vacant commercial and industrial
buildings are needed to show which sites could be redeveloped.

Human development. The city plans to initiate a link to national computer
networks to help educate and train citizens and to establish child-care centers
adjacent to high schools to help keep teen mothers in school.

Neighborhoods. The city must coordinate neighborhoods through block clubs
and precinct members to develop regular cleanup programs. It also needs to
remove derelict buildings and structures in the empowerment zone, provide better
lighting in some neighborhoods, and trim the trees around lighting.

HOUSING AND COMMUNITY DEVELOPMENT STRATEGY

Vision for Change

The city's objectives for the coming years include providing decent housing
and suitable living environments, and expanding economic opportunities for low-
and moderate-income people.

Housing Priorities

The city has identified the following high-priority housing needs for the
next 3 years:

Rehabilitation. The city intends to rehabilitate portions of public
housing and the Oak Knoll and Ambassador apartments. It also will provide energy
efficiency improvements.

Rental assistance. This will be accomplished through the Section 8
certificates, tenant-based Section 8 vouchers, the Township Trustee Rental
Assistance, and the Catholic Family Services.

Support facilities and services. This includes funding for the Family
Self-Sufficiency program, HOMES for Families program, home counseling, and
maintenance assistance.

Homebuyer assistance. Funding will be provided to the Pride and Hope,
Family Self-Sufficiency, and Down Payment Assistance programs.

Nonhousing Community Development Priorities

High-priority community development needs include:

Preventing blight within communities, particularly in low- and moderate-
income neighborhoods. Principally, the city hopes to improve public facilities
to make these communities more attractive.

Eliminating conditions that are detrimental to health, safety, and public
welfare through code enforcement, demolition, interim rehabilitation assistance,
and related activities.

Improving the quality of community services for low- and moderate-income
people. These services will complement the physical improvement of the city and
will include recreational, educational, and other social needs of residents.

Providing a comprehensive plan that encourages a more rational use of
human and natural resources and a better arrangement of residential, commercial,
industrial, recreational, and other activity centers. The plan would establish
priorities based on sound land use principles, citizen input, and needs
analyses.

Increasing neighborhood diversity and vitality by creating low-income
housing opportunities throughout the city, not just in isolated areas.

Stimulating economic development activities, especially in the private
sector to strengthen the tax base, provide jobs for residents, and reverse the
out-migration of residents and businesses. The city will assist in central
business district revitalization to review private investment and bolster public
confidence.

Increasing the mobility of low-income, moderate-income, and disabled
persons by providing access to certain public buildings and matching funds for
mass transit projects such as bus shelters.

Antipoverty Strategy

The city has integrated social services and housing activities for
households below the poverty line. Gary's antipoverty strategies are consistent
with the National Affordable Housing Act and include:

Encouraging development of programs that help families save for a
downpayment on a home.

Promoting development of programs to retain the federally subsidized
housing stock as affordable housing.

Establishing new public and private networks and strengthening existing
ones.

Fostering development of programs designed to expand Federal rental
assistance to very low-income families.

Establishing programs to preserve and upgrade the existing affordable
housing stock, including eliminating blight and other conditions that negatively
impact housing opportunities for families.

Promoting and initiating energy conservation measures and use of
alternative energy sources.

Coordination of Strategic Plan

The city is restructuring departmental services and enlisting nonprofit
organizations and private sector support to implement its Consolidated Plan.
After completing these activities, the city will be better equipped to create
and develop more efficient opportunities to provide safe and affordable housing.

ONE-YEAR ACTION PLAN

Description of Key Projects

Fire stations improvement project. The city will improve fire stations
serving mainly low- and moderate-income residential areas. The project will use
about $679,000 in CDBG funds.

Neighborhood renewal program. This includes coordinating neighborhood
demolition activities and improving curbs, sidewalks, streets, and parks. The
city will dedicate $500,000 in CDBG funds for these activities.

Curbs and sidewalk reconstruction. This involves making curbs, sidewalks,
and streets accessible to persons with disabilities. The city will erect new
street signs and other street furnishings in areas that serve low- and
moderate-income persons. The city will allocate $740,000 in CDBG funds for this
activity.

Community center improvement/construction. The city will upgrade the
existing Ambridge-Mann Community Center and help the YMCA build a facility in
the Broadway Corridor. Each project will use about $100,000 in CDBG funds.

Main street downtown revitalization. Main Street Gary will establish a
loan and grant fund to encourage development and rehabilitation of upper-floor
rental housing units in existing historic structures and storefront restorations
and renovations. The city will provide $50,000 in CDBG funds for this activity.

Emergency rehabilitation program. This provides emergency assistance for
30 to 60 low-income homeowners to rehabilitate substandard property. The city
will dedicate about $400,000 in CDBG funds for this program.

Demolition and board-up program. The project demolishes or secures unsafe
structures throughout the city. The project will receive about $750,000 in CDBG
funds.

Ambassador Arms rehabilitation. The Jefferson Park Community Development
Corporation will receive a loan of $650,000 in CDBG funds to rehabilitate the
Ambassador Arms Building, which will have 78 apartments available to low- and
moderate-income persons.

Lead Agency

The Gary Community Planning and Development Division is the lead agency for
the Consolidated Plan.